14 DAY TRIAL // Chip manufacturer Advanced Micro Devices is still struggling to push its previously buggy quad-core processors on the market, but bad luck seems to follow the company. Tech analysts claim that the upcoming Puma platform for mobile computers is affected by some serious technical issues.
AMD announced the Griffin processor in late 2007, and it was touted as the first computer CPU to be built from scratch for mobile computing. The processor was seconded by a brand-new chipset in order to create the Puma platform, a mobile architecture that aimed at taking the crown from Intel's Centrino platform.
Initially scheduled for launch in the second quarter of the year, the platform seems to be fine, as far as AMD's statements are concerned. However, tech analysts claim the situation is somewhat different. ''Our channel checks suggest AMD's Puma platform for notebooks may have a technical glitch. We have not been able to confirm this with AMD and if a problem exists, AMD could have a fix in the works that saves the launch,'' said analyst Doug Freedman of American Technology Research.
Advanced Micro Devices refused to detail upon the situation. "I wanted to make sure you understood that the note was written (from Freedman) before getting AMD's comment or response," claimed a company spokeswoman. "AMD is not aware of any technical glitches with its next-generation notebook platform, codenamed 'Puma.' Per our commitment at the AMD Financial Analyst Day in December 2007, the 'Puma' platform remains on track for Q2 2008," the spokeswoman continued.
The technological problems, however, are the last of the company's problems. The chip manufacturer is still struggling with low revenue and stock depreciation. For instance, AMD has recently reported a fourth-quarter net loss of $1.77 billion, or minus $3.06 per share, while a year ago they only scored a net loss of $576.0 million, or minus $1.08, per share.
The Puma bugs will also set the company back. Fredman is estimating that the company's revenue for September and December will drop from $1.762 billion and $1.938 billion to $1.615 billion and 1.785 billion, respectively.
''That said, we believe OEMs are attempting to seek alternate solutions,'' he said. ''As a result, we are lowering our estimates on AMD. Our longer term thesis that AMD shares reflect most of the public bad news remains intact,'' concluded Fredman.